If an organization's non-operating and operating activities are profitable, which statement is most correct?

Total margin is a measure that reflects the overall profitability of an organization, taking into account both its operating and non-operating activities. When an organization's non-operating activities, such as investments or other income sources, are profitable in addition to its operating activities, it indicates that the total revenue generated exceeds total expenses in both areas.

Since the operating margin only accounts for the profitability of core business activities, it generally reflects lower profitability than total margin when non-operating activities are also contributing positively to overall financial performance. Therefore, if both segments are profitable, total margin will indeed be greater than operating margin. This relationship emphasizes the important role that non-operating income can play in the overall financial health of an organization.